Best Tax Tips for 2007

April 16, 2007 may still be a few months away but the procrastinators will wait until then to file their income taxes. State and Federal income tax deadlines will be soon approaching and here are some last minute tips to help.

Just Do It: Although many of us dread filing our taxes, it is worthwhile to file them on time. Many people who rush through their taxes at the last minute make mistakes. People should start now and be very thorough in completing their tax forms. If you really need more time, file for an extension now, don't wait until April. Don't fail to file because you can't pay the bill. The penalties and interest are much lower if you pay some of your taxes now and some later.

Just Know It: The more you know about your options, the easier filing your taxes is. Even if you are hiring a tax professional to file for you, you should know about your options. The tax laws change from year to year and you may be eligible for things you didn't qualify for last year.

Just Get It Together: If you don't have all the information, you can't get credit for it. Yahoo! Finance's Tax Center offers a tax-document checklist that can help you get all of the needed information in the right place. They also offer links to things like tax calculators, and resources.

Just Get Hooked Up: If you can, e-file you taxes. This will save time and money, but will also make it easier and les error prone. The computer does the math for you and software like TaxCut and TurboTax will check your forms for errors. Also, if you e-file the IRS will contact you sooner with any errors and you can opt to receive direct deposit and you can get your check within a few days.

Just Get Help: There are three options for help in doing your taxes. Places like H&R Block or Jackson Hewitt can file your taxes for about the same price of tax software. Enrolled agents can help you in filing your taxes, just be sure they are registered in the NAEA.org. Certified public accountants can be helpful if your tax situation is very complex. The fee that they charge can often be offset by the deductions they find. No matter what you use, ask in advance for a list of the documents they will need.

Just Get Checked: Always go over every line of your return again before you file. An error causes the IRS to look more closely at your tax return and may delay the arrival of your refund. Some common errors include incorrect social security number; names spelled improperly, earned income credit incorrect, balance due or refund calculated wrong.

Just Get Started Now: When you finish and file your 2006 return, start saving, organizing and preparing for your 2007 return. Think of the deductions you missed out on in 2006 that you can work on for 2007. Create paper files and folders to sort and save your documents for next year.